Française des Jeux 2017 Results

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2017 results: FDJ generated EBITDA of € 316 million (+ 5.3%) and Group net income of € 181 million (+ 2.8%) - Economic contribution: € 5.3 billion in national wealth and 54,200 jobs created or sustained in 2017 (BIPE study)

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FDJ has been involved for 3 years, at the initiative of Stéphane Pallez, President and CEO of the FDJ Group, in a transformation and growth project FDJ 2020 to support the new digital uses of games and customers. FDJ's objectives include 20% digitized sales and the recruitment of + 1 million customers by 2020.

The financial and extra-financial results for 2017 show that the FDJ 2020 project produces its effects at mid-term: development of bets (+ 5.7% in 2017, + 17% in 3 years), stabilization of the customer base at 26 M , digital transformation (€ 1.7 billion in digitized loans, multiplied by 3.5 over the last 3 years) and economic performance with an EBITDA of € 316 million, which rose by + 5.3% in 2017 and a net profit which increased by 2 , 8% to 181 M €.

After that of 2016, the BIPE 2017 study highlights the contribution of FDJ in the creation of national wealth and employment with 0.2% of the national GDP. In this context, for the first time FDJ evaluated its societal contribution in the territories, in particular through the retail network (a point of sale within 10 minutes throughout France). Le Bipe also assessed the impact of the 2017 dividends paid to its two historic shareholders, the André Maginot National Federation and the Union des Injuries de la Face et de la Tête.

For Stéphane Pallez "FDJ continues to improve its operational, financial and extra-financial performance thanks to the completion of its strategic project FDJ 2020 which focuses the company on new customer uses and the games of tomorrow. Its results contribute to the growth of national wealth and the societal action of its historic shareholders in the world of combat. They promote employment and generate a significant economic flow throughout the country. In a gaming sector that is evolving strongly in France, in Europe and in the world, from the point of view of customers, technology and competition, FDJ 2 nd European lottery, is ready to meet the challenges " .

FDJ Group presents strong and growing financial indicators

While the 2017 bets amounted to € 15.1bn (+ 5.7%) thanks to a rich and diversified game portfolio, and the players' gains amounted to € 10bn (+ 6%), the Gross Product of the Games (difference between sales and earnings) of FDJ reached 
5 billion euros in 2017 (+ 5%).

FDJ represents nearly 50% of the gaming sector in France, with a slightly higher growth than the market (Gross Gambling Product in France of € 10.2 billion, + 4.5% in 2017) .

The contribution to public finances amounts to € 3.4 billion and increases by € 89 million. It represents 1% of the state budget.

Revenue (Gross Games Revenue - Levies + Income from other activities) was € 1.762 million, up + 3.9% from 2016.

EBITDA increased by + 5.3% to € 316 million. FDJ improves its profitability by controlled growth of operating expenses of 4% in line with that of turnover. Retailers' fees were up in line with the increase in listings, which amounted to € 755m (+ 5.2%). Personnel expenses amounted to € 213 million, up 8% as a result of the recovery of 49 business segments and the integration of new skills to carry out the Group's strategic project. Other operating expenses (IT, design and promotion of games, etc.) were controlled at € 533 million (+ 0.6%). EBITDA / CA operating profitability is 18%.

The net income of the group amounted to € 181 million, up + 2.8% compared to 2016. In 3 years, FDJ has absorbed most of the cost of the transformation of its commercial function launched in 2014. FDJ presents a solid financial structure with net cash of € 948 million, an increase of € 38 million compared to 2016.

€ 5.3 billion in national wealth created and 54,200 jobs created or sustained (BIPE 2017)

For the second year, the BIPE 2017 study evaluated the economic and social contribution of the FDJ Group in France *

The contribution to the national wealth of FDJ amounts to 0.2% of the national gross domestic product, ie € 5.3 billion in 2017, + € 200 million of national wealth compared to 2016. FDJ also has a positive impact of economic training close to that of the automobile industry.

FDJ is a local player that supports the activity of the territories through a network of 30,800 points of sale distributed between rural and urban areas. FDJ covers 99% of dense areas. An FDJ point of sale is always accessible in less than 10 minutes, in urban area on foot or rural by car.

In terms of jobs , FDJ created or sustained 54,200 jobs throughout the country, including ¼ of the 80,000 jobs in the bar-tabac-presse sector (20,230 jobs). FDJ contributed to 15,910 public service jobs and 7,860 jobs in the sport sector.

FDJ has contributed to three economic ecosystems:

- The national community , with € 3.4 billion in payments to the State from gaming activity (excluding taxes and generic taxes) growing by 3%.

- French sports with 250M € invested in the sector; + 5%.

- An ecosystem of suppliers and local businesses .

FDJ strengthens the social action and the memorial contribution of its historical shareholders of the world fighters and founders. The FDJ dividends of € 16.7 million received in 2017 by the National André Maginot Federation and the Union of the Injured People of the Face and the Head have been used for social actions (223 000 beneficiaries, 314 associations and 1,400 people directly helped). More than 90% of their budget is tied to FDJ (dividends and investment income). The dividends paid constitute the first source of funding for the 2 EHPADs and the rest establishment managed by these associations.

* The methodology of the BIPE 2017 study incorporates the international standards for assessing the economic impacts used by the major bodies (UN, European Commission ...).It assesses the direct, indirect, induced and catalytic effects of FDJ to calculate its contribution to national wealth (Gross Domestic Product) and employment in France.

Extra-financial results for 2017 driven by a Corporate Social Responsibility policy that is part of the FDJ 2020 strategy

FDJ engages its corporate social responsibility through 4 principles of actions applicable at all levels of the company:

Committed to protecting our customers, our employees and future generations. Prevention of excessive gambling is an essential mission of FDJ, by evaluating new games before and after their marketing, setting up online gambling and gambling moderators, and strengthening prevention against gambling. minors (100% of the points of sale inspected, training of the sales force ...).

This commitment also concerns the fight against discrimination and gender equality, as well as the reduction of the FDJ carbon footprint.

Integral to ensure the respect of ethics , through in particular in 2017 the fight against money laundering with the development of a tool "safergame" with IBM for scoring risk in connection with sports betting, and increased monitoring of bets particularly in the framework of the National Platform for Combating the Manipulation of Sports Competitions.

Pioneers to promote and innovate, with in 2017 the adoption at the initiative of FDJ of a "Corporate Social Responsability Guidelines" by lotteries of the association European Lotteries (EL), as well as the design of films "Nudge" aimed to question the customer about his practice.

Solidarity to be useful to all , with in 2017 the evolution of the corporate purpose of the FDJ Corporate Foundation: "equality of opportunity through play" which now aims to support education, integration and disability . In addition, 17% of FDJ investments are invested in socially responsible investment funds.

Highlights 2018

Continuation of the commercial and territorial transformation of the company

. New Compensation Method for 2018-2020 Retailers

. New territorial organization and end of the deployment of automated direct distribution

Lottery

. Launch of Games for the Heritage at Risk Mission

Sport

. Sports betting: a rich year with the Football World Cup

. Preparation of the Paris 202 Olympics and involvement of companies

FDJ 2020 transformation  : a new headquarters

Schedule: Simplified Income Statement - FDJ Group
Schedule: Simplified Income Statement - FDJ Group
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